HUD Section 3

Section 3 of the Housing and Urban Development Act of 1968, commonly referred to as Section 3, requires that recipients of the US Department of Housing and Urban Development (HUD) funds, to the greatest extent possible, provide job training, employment, and contract opportunities for low- or very-low income residents in connection with projects and activities in their neighborhoods.

DHCD, as a recipient of Federal and local housing and community development funds, is committed to the compliance of Section 3 in its programs. Section 3 is applicable to all projects and activities funded, in part or in whole, with DHCD funds for projects exceeding $200,000. Section 3 also applies to all subcontracts exceeding $100,000 for Section 3 covered projects. Contracts valued under $100,000 are not subject to Section 3; however, DHCD encourages awardees to engage in other economic opportunities to empower low-income persons and businesses.

Section 3 benefits low-income and very low-income District residents. District residents and businesses that qualify as Section 3 residents and business concerns may receive preferences in hiring, training and contracting opportunities.